Table of Contents

INTRODUCTION

THE PURPOSE OF THIS GUIDANCE

KEY POINTS FOR DEVELOPING THE 2012-13 PORTFOLIO BUDGET STATEMENTS

STRUCTURE OF THE 2012-13 PORTFOLIO BUDGET STATEMENTS

PORTFOLIO OVERVIEW

Ministers and Portfolio Responsibilities

Portfolio Resources

AGENCY RESOURCES AND PLANNED PERFORMANCE

Overview and highlights

SECTION 1: AGENCY OVERVIEW AND RESOURCES

Strategic Direction Statement

Agency Resource Statement

Budget Measures

SECTION 2: OUTCOMES AND PLANNED PERFORMANCE

Introduction

Outcome Strategy

Outcome Expense Statement

Program Reporting - Introduction

Program Objective

Program Expenses

Program Deliverables

Program Key Performance Indicators

SECTION 3: EXPLANATORY TABLES AND BUDGETED FINANCIAL STATEMENTS

Movement of Administered Funds

Special Account Flows

Australian Government Indigenous Expenditure Statement

Financial Statements – Introduction

Financial Statements

PRINTING, PUBLISHING AND WEB GUIDANCE

1.Security Requirements for Portfolio Budget Statement preparation, publishing and distribution

2.Portfolio Responsibilities and Quality Assurance by Finance

3.Which Printer to Use and Printing Specifications

4.Delivery to Lock-up, the Senate, House of Representatives, Treasury Lockup and Finance

5.How to upload the information to budget.gov.au and agency websites

6.Portfolio descriptions to be used for the 2012-13 Portfolio BudgetStatements

CONTACTS

FREQUENTLY ASKED QUESTIONS

Template and pasting links into the Portfolio Budget Statements document

Files to be used

Saving the files

Using the files

Additional Agency Estimates — When using separate files for consolidation as pdf

WORKED EXAMPLES

Presentation of Information on Linked Programs

Changes to Outcomes and Programs from 2011-12 Portfolio Budget Statements

GLOSSARY OF TERMS

INTRODUCTION

THE PURPOSE OF THIS GUIDANCE

This guidance has been developed to help budget officers in Australian Government
(the Government) agencies prepare and publish the 2012-13 Portfolio Budget (PB) Statements. It is designed to cover all aspects of the document, from the inclusion of performance and financial information to printing, publishing and delivery. It explains what the requirements are, incorporating the requirements of the budget framework policy, why information is being included and where the information should be sourced.

Thisguidance, together with the Central Budget Management System (CBMS) Navigators Guide document, contains the essential information plus additional reference material to enable agencies to complete their PB Statements.

KEY POINTS FOR DEVELOPING THE 2012-13 PORTFOLIO BUDGET STATEMENTS

PB Statements, together with the Budget Papers, are a package of documents available to the Parliament and the public, which explain the Government’s budget decisions. The
PB Statements also provide further information (financial and non-financial) at the portfolio and agency level about the ongoing policy and program delivery initiatives of the Government.

The PB Statements are formal ministerial documents, which are required to be tabled to meet a Ministers’ accountability obligations to Parliament.

Each PB Statement is signed by the respective Portfolio Minister. Signing arrangements for each PB Statement will be determined by the senior Portfolio Minister (the first minister shown in the current Ministry List issued by the Department of the Prime Minister and Cabinet at

The following key points should be kept in mind when producing an agency’s PBStatements.

Key principles for developing the PB Statements

Agencies should aim to produce a PB Statement that presents three key pieces of information:

  • What does the Government (through the agency) want to achieve?
  • How and through what means it proposes to achieve this?
  • How will it know if it is succeeding or making progress?

Aligning PB Statements and Annual Reports

PB Statements are intended to provide alignment between budget reporting and annual reports. It is important that agencies are mindful of this when preparing their PB Statements.

Structure and Presentation of Information

The document’s design has four discernable layers of information: Portfolio, Agency, Outcome and Program. To ensure that PB Statements are clear and concise, it is important for agencies to only include information where it is most relevant.

More guidance on the information required in each section of the PB Statement is included throughout this guidance document.

Agencies can use their websites to publish additional information that goesbeyond the requirements of the PB Statements.

Appropriation Bills and Budget Papers are authoritative; PB Statements are for explanation

The PB Statements are budget related papers and are declared by the Appropriation Acts to be ‘relevant documents’ to the interpretation of the Acts, according to section 15AB of the Acts Interpretation Act 1901.

They are not the authoritative document on appropriations; they explain and provide detail to the Parliament on the appropriations sought and agencies’ planned performance. The figures and wording in the Appropriation Bills are the source of information and become, once passed by Parliament, Acts of law and as such are the authoritative documents. Should any discrepancy occur between the Appropriation Acts and the PB Statements, it is the Appropriation Acts that are definitive.

Relevant Period

The 2012-13 PB Statements will cover the current year (2011-12), the budget year (2012-13) and the forward estimates years 2013-14, 2014-15 and 2015-16.

CBMS Data

CBMS is the central source of budget information and is the basis of whole of government figures, the Appropriation Bills, financial data and Budget Papers Nos. 1-4. As such all appropriation figures (including for the PB Statements) must be sourced from CBMS to ensure consistency between the PB Statements, the Appropriation Bills and the Budget Papers. The financial information reported in an agency’s PB Statement must match with the figures in CBMS.

The CBMS Navigators Guide for thepreparation of the 2012-13 Portfolio Budget Statements (Attachment D),provides the relevant links in CBMS to help agencies navigate through the CBMS system and generate the reports required for their 2012-13
PB Statements.

Estimates Memorandum

Where an Estimates Memorandum (EM) provides guidance in relation to a particular subject or issue, agencies should rely on that guidance in developing their PB Statements unless this document indicates otherwise.

Attachment Dalso contains useful references to related EMs and can be accessed from the CBMS knowledge management tool.

Rounding

Agencies should round figures in the tables and in the text of their PB Statements. Figures in the text are generally rounded to one decimal place. Figures in the tables are generally rounded to the nearest thousand with the exception of the Portfolio Resources table where the figures are in millions, rounded to one decimal place.

STRUCTURE OF THE 2012-13 PORTFOLIO BUDGET STATEMENTS

Below is an outline of the required structure for the 2012-13 PB Statements:

Portfolio Reporting

  • Portfolio Overview
  • Ministers and Portfolio Responsibilities
  • Portfolio Structure and Outcomes
  • Portfolio Resource Statement

Department/Agency Reporting

  • Agency Resources and Planned Performance
  • Section One: Agency Overview and Resources
  • Strategic Direction
  • Agency Resource Statement
  • Budget Measures
  • Changes in agency outcomes and programs (where relevant)
  • Section Two: Outcomes and Planned Performance
  • Outcomes and Performance Information
  • Outcome 1 Strategy
  • Outcome 1 Resource Statement
  • Contributions to Outcome 1
  • Program 1.1
  • Program 1.2 (etc.)
  • Outcome 2 Strategy (etc.)
  • Section Three: Explanatory Tables and Financial Statements
  • Explanatory Tables
  • Budgeted Finance Statements
  • Glossary

PORTFOLIO OVERVIEW

The Portfolio Overview provides the reader with a high level overview of the portfolio, its agencies, goals, structure and resources.

The portfolio level is the highest level of information to be presented in the PBStatements.

Portfolio agencies should be brief in their descriptions and only include information which is relevant and specific from a portfolio perspective. This will avoid unnecessary duplication of information presented in later sections.

Information at a department or agency level should be included only where it contributes to a broader understanding of portfolio goals and responsibilities.

Components of Portfolio Overview

  • Minister(s) and Portfolio Responsibilities
  • Portfolio Structure and Outcomes

- Figure 1: Portfolio structure and outcomes

  • Portfolio resources made available in the Budget year

- Table 1 Portfolio resources made available in the Budget year

Ministers and Portfolio Responsibilities

[INSERT NAME] PORTFOLIO OVERVIEW

MINISTER(S) AND PORTFOLIO RESPONSIBILITIES

This section provides a brief overview of the portfolio, including the relevant Portfolio Minister(s) and the structure of the portfolio. The portfolio structure is summarised in Figure 1.

Only significant agency responsibilities should be described here along with Outcome Statements. Further information on individual agency outcomes and responsibilities should be left to the Agency’s Strategic Direction Statement or Resources and Planned Performance section.

The information contained under the ‘Portfolio Overview’ should remain high level. All issues relating to a particular agency’s performance should be addressed in their ’Agency Resources and Planned Performance’ statements.

Administrative Arrangements Order (AAO) changes, if relevant, should be described briefly.

Figure 1 is the expected format. Agencies may need to modify it to ensure that it provides a clear and simple guide to the portfolio, for example where more than one page is needed to incorporate all basic information (although retaining a portrait format).

Portfolio Overview (cont)

Purpose

The Portfolio Overview section should provide readers with information about the portfolio and its agencies at the top strategic level.

Guidance

The Portfolio Overview is the highest level of information presented to readers and should describe the primary areas of responsibility the portfolio has within the broader context of government.

In providing an overview, portfolio agencies are encouraged to specify any portfolio objectives that the portfolio as a whole is working towards while also recognising the contributions and relationships of portfolio agencies.

The overview should include a brief outline of the role of each agency within the portfolio and their relationships with other agencies in the portfolio. Again, to avoid unnecessary duplication, details about each agency in the portfolio should be included only in the context of its contribution to the wider goals of the portfolio.

The overview should also include common themes across the portfolio outcomes.For example, the broad impacts and/or trends of health policy on the Australian community (Health and Ageing portfolio), or improvements in Indigenous Affairs (Families, Housing, Community Services and Indigenous Affairs portfolio).

Any significant changes to the portfolio’s operating environment or its responsibilities since Additional Estimates should also be outlined, including AAO changes.

Agencies should keep the Portfolio Overview statement to two pages.

Additional information

The Portfolio Overview is a textual section and no particular information sources are required to be included. However when compiling this section it may be helpful to look at thefollowing:

AAO (Matters dealt with by the department) see pmc.gov.aufor details.

(Note: Agencies are not required to list relevant legislation);

portfolio Department’s Mission and/or Vision Statement;

Ministerial Statements by Portfolio Ministers;

consistent themes in portfolio agencies’ Outcome Statements; and

major new Government policy or legislation affecting the portfolio and theintended results and impacts.

Portfolio Diagram(Figure1)

Portfolio Diagram

Figure 1: XXXXXXXXXX portfolio structure and outcomes

Note– Refer to CBMS Navigators Guide documentpage 4 for the sources of information for this table.

Purpose

The Portfolio Structure and Outcomes diagram provides readers with a diagrammatic presentation of the portfolio structure and the responsible Ministers. The diagram should clearly indicate the Minister(s), the portfolio department and its Secretary, and the other portfolio agencies and their Chief Executive Officers (CEOs).

The diagram provides readers with a single view of the portfolio’s outcomes and the most senior responsible office holders by agency, whether they are a Secretary, CEO, Commissioner, Chairman, etc.

Guidance

Portfolio departments are to include all entities in the General Government Sector (GGS) within their portfolio in the diagram. Information on whether or not particular agencies are in the GGS, can be found by running a CBMS Common Information Tree Report: BEAM Reports → Common Information Tree Reports → Policy Splits Common Reports → (Report Type) Query agency table.

Portfolio Diagram (cont)

Both Financial Management and Accountability Act 1997 (FMA Act) agenciesand Commonwealth Authorities and Companies Act 1997 (CAC Act) bodies are to be included in the diagram.

The example included in the shell is the preferred portrait presentation of a portfolio’s structure.

Portfolio agencies will need to ensure that the Outcome Statements used in the portfolio diagram are the most current statements agreed by the Minister for Finance and Deregulation (Finance Minister), following any changes to the Outcome Statements undertaken in consultation with the Department of Finance and Deregulation (Finance) over 2011-12 and included in the 2012-13 Appropriation Bills. The outcome statement(s) included in Figure 1, and throughout the PBStatements, must be consistent with the Appropriation Bills.

Where applicable, agencies are to indicate each Minister’s responsibilities if they are specific to an agency or body within the Portfolio, to increase the transparency of Ministerial accountability.

It is the Portfolio Department’s responsibility to ensure the correct title details are included for the heads of agencies (e.g. Chief Executive Officers).

Where non-portfolio Ministers have specific responsibilities, agencies are to provide a link between the relevant Minister and agency.

All GGS agencies are to be included in the diagram and the PBStatements.

Portfolio Resources

Portfolio Resources

Table 1 shows the total new resources provided to the portfolio in the 2012-13 budget year, by agency.

Appropriation / Receipts / Total
Bill No. 1 / Bill No. 2 / Special
$m / $m / $m / $m / $m
Department xxxxx
Administered appropriations
Departmental appropriations
Total:
Agency xxxxx
Administered appropriations
Departmental appropriations
Total:
Agency xxxxx
Administered appropriations
Departmental appropriations
Total:
Agency xxxxx
Administered appropriations
Departmental appropriations
Total:
Portfolio total
Less amounts transferred
within portfolio
Resources available within portfolio:

Note– Refer to CBMS Navigators Guide documentpages4-7 for the sources of information for this table.

Purpose

The Portfolio Resources table presents an aggregate picture of the total new resources provided by the Government to the portfolio, broken down by agency. The table does not take into account amounts carried forward, nor does it include special account closing balances. The figures must match back to the Agency Resourcing Table in Budget Paper No. 4 (BP 4) and the Appropriation Bills.

Figures in the Portfolio Resources table should be in millions, rounded to one decimal point.For all other tables, figures need to be rounded to the nearest thousand.

This table completes the ‘Portfolio’ level picture with the agency having provided an overview of the major responsibilities and portfolio goals for the budget year, a diagrammatic illustration of the agencies working towards these goals, and an overview of the new resourcing made available to the portfolio.

Portfolio Resources (cont)

Guidance

The figures included in the ‘total’line are to be sourced from CBMS by running the BEAM ‘Agency Resourcing’ report.

The figures included for each agency in producing this table must match the figures included in the Appropriation Bills and in the ‘Agency Resourcing Table’ in BP 4 as they are the authoritative documents. PB Statements are for explanation. Using the figures from CBMS will ensure consistency as it is the central repository of budget information used for the production of the Appropriation Bills and Budget Papers.

The receipts column is the sum of funds received from other sources, through section 31 FMAAct Relevant Agency Receipts(or receipts from independent sources for CAC Act bodies) and non-appropriated credits to agency Special Accounts. These figures appear under the Agency/CAC receipts and Special Accounts columns in the Agency Resourcing Table of BP 4, respectively.

Payments to CAC Act bodies that appear in the Bills are not to be shown in the Portfolio Department’s appropriation lines. They are to be reported by the CAC Act body under the appropriate bill type, not in the receipts column.

The Portfolio Total line will equal the Portfolio Total line in the Agency Resourcing Table in BP4. Transfers between agencies within the portfolio are to be netted out (e.g. section 31 FMA Act receipts from one agency to another) to show an accurate picture of the resources made available to the portfolio.

For further guidance on the inclusion of figures in CBMS and the composition of the figures generated, refer the relevant EM which will cover the 2012-13 Budget Appropriation Bills and BP 4 “Agency Resourcing” - Process and Timetable, and the CBMS Navigators Guidedocument.

AGENCY RESOURCES AND PLANNED PERFORMANCE

Overview and highlights

  • Section One: Agency Overview and Resources;
  • Section Two: Outcomes and Planned Performancestreamlines and consolidates the previous changes to program reporting and performance reporting. Agencies are required to:
  • continue reporting on the financial and non-financial planned performance of the agencies across the budget and forward estimates period;
  • further develop the range and quality of budget information available to assist the Government and Parliament understand and assess agencies’ planned performance; and
  • ensure there is consistency between the list of programs published in agency PB Statements and programs recorded in the CBMS.Programs reported in PB Statements must match the list of approved programs in CBMS, unless an exception has been explicitly agreed with Finance.
  • ‘Other Departmental’ must not be used as a program name in the PBS. The CBMS allocation line ‘Other Departmental’ should be reported in the PB Statements as:
  • Program support - where departmental funding supports the delivery of existing Commonwealth Programs; or
  • A single program, with the agency name or similar used as the program name - where departmental funding is not classed as program support and the funding represents the functions of the agency (e.g. the Productivity Commission reports under a single program titled ‘Productivity Commission’).
  • In cases where ‘Other Departmental’ funding is not classed as program support, agencies should not split it into multiple programs in their PB Statements. If multiple programs were reported in the 2011-12 PB Statements they should be rolled up into a single program (as described above).
  • In this case program components can be used to disclose additional program information where appropriate.
  • Section Three: Explanatory Tables and Budgeted Financial Statements includes additional reporting on agencies’ capital budgets, asset positions and the net cost of services presentation of the comprehensive income statement.These incorporate changes flowing from net cash funding arrangements under the Operation Sunlight reforms and latest Finance Minister Orders.

The guidance has also been refined to address issues raised during the last budget process, feedback from agencies and other interested parties, and further changes flowing from Operation Sunlight.